FAC Explorer

Audit 320767

FY End
2023-06-30
Total Expended
$3.98M
Findings
4
Programs
16
Organization: Wilson Elementary School District No. 7 (AZ)
Year: 2023 Accepted: 2024-09-24
Auditor: Heinfeld Meech & CO PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498114 2023-001 Significant Deficiency - N
498115 2023-002 Significant Deficiency - AB
1074556 2023-001 Significant Deficiency - N
1074557 2023-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $423,209 - 0
84.371 Comprehensive Literacy Development $236,637 - 0
10.559 Summer Food Service Program for Children $230,377 - 0
84.027 Special Education Grants to States $214,786 - 0
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $104,159 - 0
84.287 Twenty-First Century Community Learning Centers $97,029 - 0
10.553 School Breakfast Program $93,751 - 0
84.424 Student Support and Academic Enrichment Program $65,090 - 0
84.365 English Language Acquisition State Grants $41,082 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $37,554 - 0
84.027 Covid-19 Special Education Grants to States $32,057 - 0
10.555 Covid-19 National School Lunch Program $11,348 - 0
84.425 Covid-19 Education Stabilization Fund $7,302 Yes 0
10.555 National School Lunch Program $5,569 - 0
10.558 Child and Adult Care Food Program $3,785 - 0
10.649 Covid-19 Pandemic Ebt Administrative Costs $646 - 0

Contacts

Name Title Type
LV2FCT5QC3P1 Talise Berry Auditee
6026812205 Eric S. Taylor, Cpa, Cgfm Auditor
No contacts on file

Notes to SEFA

Title: Assistance Listing Numbers Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of Wilson Elementary School District No. 7 under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Any negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Passthrough entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis indirect cost rate. The program titles and Assistance Listing numbers were obtained from the federal or pass‐through grantor or through sam.gov. If the three‐digit Assistance Listing extension is unknown, there is a U followed by a two‐digit number in the Assistance Listing extension to identify one or more Federal award lines from that program. The first Federal program with an unknown three‐digit extension is indicated with U01 for all award lines associated with that program, the second is U02, etc.

Finding Details

Finding 2023-001
Findings and Questioned Costs Related to Federal Awards Finding Number: 2023001 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425U210038 PassThrough Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Criteria All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC §§31413144, 3146, and 3147). Condition It could not be determined whether laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds were paid equal to or in excess of the prevailing wage rate for the locality. Cause The District was not aware of all of the prevailing wage requirements applied to its construction contracts. Effect The District did not comply with the special tests and provisions requirements of the grant. Context For two of two construction contracts reviewed, the District did not require the contactor or subcontractor to submit the required certified payroll for each week work was performed. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should review federal requirements over prevailing wages, develop policies and procedures, and ensure those developed policies and procedures are implemented. Views of Responsible Officials See Corrective Action Plan.
Finding 2023-002
Findings and Questioned Costs Related to Federal Awards Finding Number: 2023‐002 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria Management is responsible for following internal controls over journal entries to allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis. Condition The District did not have adequate controls over journal entries. Cause Due to turnover of personnel and staff vacancies, journal entry procedures were not always followed. Effect The District did not comply with the activities allowed/unallowed and allowable cost/cost principles requirements of the grant. Context For one of five journal entries reviewed for compliance with grant requirements, supporting documentation was not retained. In addition, it was unable to be determined if the journal entry was approved by an authorized person. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should properly implement internal controls over journal entries. Views of Responsible Officials See Corrective Action Plan.
Finding 2023-001
Findings and Questioned Costs Related to Federal Awards Finding Number: 2023001 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425U210038 PassThrough Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Criteria All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC §§31413144, 3146, and 3147). Condition It could not be determined whether laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds were paid equal to or in excess of the prevailing wage rate for the locality. Cause The District was not aware of all of the prevailing wage requirements applied to its construction contracts. Effect The District did not comply with the special tests and provisions requirements of the grant. Context For two of two construction contracts reviewed, the District did not require the contactor or subcontractor to submit the required certified payroll for each week work was performed. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should review federal requirements over prevailing wages, develop policies and procedures, and ensure those developed policies and procedures are implemented. Views of Responsible Officials See Corrective Action Plan.
Finding 2023-002
Findings and Questioned Costs Related to Federal Awards Finding Number: 2023‐002 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria Management is responsible for following internal controls over journal entries to allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis. Condition The District did not have adequate controls over journal entries. Cause Due to turnover of personnel and staff vacancies, journal entry procedures were not always followed. Effect The District did not comply with the activities allowed/unallowed and allowable cost/cost principles requirements of the grant. Context For one of five journal entries reviewed for compliance with grant requirements, supporting documentation was not retained. In addition, it was unable to be determined if the journal entry was approved by an authorized person. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should properly implement internal controls over journal entries. Views of Responsible Officials See Corrective Action Plan.